Free Enterprise System Vocabulary

Front

______ is how much of a good there is for people to buy.

Back

supply

Front

_____ is the amount of a good or service that consumers are willing to purchase.

Back

demand

Front

What is the money left over after a business pays all its expenses called?

Back

profit

Front

A free enterprise system means __________.

Back

The government DOES NOT tell the people what they can make or sell.

Front

What is the situation when the demand for something is higher than the supply?

Back

scarcity

Front

An example of a good is ______. Options: swim lessons, a lawn service, a haircut, a video game

Back

a video game

Front

An example of a service is ______. Options: clothes, food, a haircut, a video game

Back

a haircut

Front

What do you call the added cost, you have to pay back, when you borrow money?

Back

interest

Front

What is one of the primary ways people can earn money?

Back

labor

Front

What do you call the amount of money that is earned as a result of labor?

Back

income